General government net financial assets increased in the first
quarter of 2018

At the end of the first quarter of 2018,
general government's net financial assets, i.e. the difference
between assets and liabilities, amounted to EUR 132.8 billion. Net
financial assets went up by EUR 1.8 billion from the previous
quarter, driven by local government. The net financial assets of
employment pension funds and other social security funds contracted
in total by EUR 0.6 billion, while the net financial assets of
central government increased by EUR 0.6 billion. These data derive
from general government financial accounts compiled by Statistics
Finland.

General government’s net financial
assets

Central government's net financial assets grew by EUR 0.6
billion from the previous quarter's level, being EUR -63.5 billion
at the end of the quarter. In the first quarter of 2018, gross
recording was adopted for government derivatives. The change in
recording caused approximately a EUR 6 billion increase in assets
and liabilities. The change in recording does not affect net
financial assets. After the effect of the derivative recording has
been subtracted from both assets and liabilities, assets declined
by EUR 1.0 billion mainly as a result of the drop in the deposit
stock, and liabilities contracted by EUR 1.6 billion especially due
to a fall in the debt security stock.

Local government's net financial assets increased by EUR 1.8
billion. Assets grew by EUR 0.8 billion primarily due to an
increase in deposits. Local government's liabilities contracted by
EUR 0.9 billion mainly as a result of a drop in the stock of both
short-term and long-term loans. The stock of long-term loans was
EUR 16.6 billion at the end of the quarter.

Employment pension schemes' net financial assets stood at EUR
195.5 billion at the end of the quarter. The stock of quoted shares
increased by EUR 1.1 billion mainly thanks to share acquisitions.
Share acquisitions were financed with deposits and their stock
decreased by EUR 1.3 billion. The stock of derivatives declined by
EUR 0.6 billion while the related stock of cash collateral
contracted by EUR 0.3 billion. The amount of assets invested in
fund shares and debt securities remained almost unchanged. The net
financial assets of other social security funds went up by EUR 0.2
billion.